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Discounted free cash flow model-heavy metal corporation

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Reference no: EM132466972

Heavy Metal Corporation is expected to generate the following free cash flows over the next four years:

Year 1 2 3 4

FCF ($Million) 53 68 78 82

After then, the free cash flows are expected to grow at the industry average of 4% per year. Using the discounted free cash flow model and a weighted average cost of capital of 14%.

Estimate the enterprise value of Heavy Metal: ______ millions

If Heavy Metal has no excess cash, debt of $300 million, and 40 million shares outstanding, estimate its share price___?

Please answer both problems as they go together.

Reference no: EM132466972

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